By Egena Sunday Ode
President Bola Tinubu has approved a full and final settlement of N3.3 trillion long-standing accumulated debts that have beset the power sector.
Already, implementation of the payment plan has begun with 15 power plants signing settlement agreements totalling N2.3 trillion.
Also, the Federal Government has raised N501 billion to fund these payments, with N223 billion already disbursed and further payments underway.
Special Adviser to the President on Information and Strategy, Bayo Onanuga, disclosed this in a statement issued yesterday.
Recall that the country has been plunged in darkness for sometimes now as the government grapples with poor power supply.
Following the public outcry over the uncanny development, the Minister of Power, Adedibu had publicly apologised to Nigerians about a fortnight ago, promising to restore improved power supply in two weeks.
Onanuga in the Sunday statement said the debt settlement is being handled under the Presidential Power Sector Financial Reforms Programme.
“The debt repayment plan followed the final review of the legacy debts that have beset the power sector for more than a decade.
“The long-standing debts accumulated between February 2015 and March 2025. Following verification, N3.3 trillion has been agreed as a full and final settlement, ensuring a fair and transparent resolution.
“Implementation has begun, with 15 power plants signing settlement agreements totalling N2.3 trillion. The Federal Government has already raised N501 billion to fund these payments. Out of the amount, N223 billion has been disbursed, with further payments underway,” the statement explained.
Onanuga noted that with the payments reaching the power value chain, generation will be more stable, while electricity reliability will improve with supports to power plants.
He adde that as the sector stabilises, more investment, more jobs, and better service will follow.
Onanuga quoted Olu Arowolo-Verheijen, Special Adviser on Energy to President Tinubu to have ecplained:
“This programme is not just about settling legacy debts. It is about restoring confidence across the power sector — ensuring gas suppliers are paid, power plants can keep running, and the system begins to work more reliably.”
“It is part of a broader set of reforms already underway — including better metering and service-based tariffs that link what you pay to the quality of electricity you receive.
“The government is also prioritising power supply to businesses, industries, and small enterprises — because reliable electricity is critical to creating jobs, supporting livelihoods, and growing the economy.
“The goal is simple: more reliable power for homes, stronger support for businesses, and a system that works better for all Nigerians”, she added.
President Tinubu has commended all stakeholders who supported efforts to resolve the legacy issues in the power sector. He has also confirmed that the next phase (Series II) will begin this quarter, the statement said.
